How to Collect an Unsecured Loan You Gave for a House Purchase

My mother let her son and wife borrow 100k to buy a house in Michigan. My mom wrote a document with a payment plan for 3 years. After 3 years they had to take out a loan to pay her back. Besides the payments they had to pay the property taxes which still have not been paid.

The paper work is signed by both parties but not notarized. It's been over 4 years and there has only been a few payments, and no property taxes have been paid.

The deed for the house is not in my mother's name it is in theirs. She was just the bank.

The son left the house a few years ago. The wife is still there and moved her parents in right after the son left.

My mom went to lawer and had an offer of 5k to each to sign over the house so she can sell it. The son never responded and the daughter-in-law said good luck getting me out of this house.

My mom is worried for the unpaid taxes what the state is going to do since she owns the loan.

Re: Let Son and Wife Borrow Money for House

My mom went to laywer and had an offer of 5k to each to sign over the house so she can sell it. The son never responded and the daughter-in-law said good luck getting me out of this house.

No surprise there. They OWN a house worth more than $100,000. Of course they aren't going to sell it for $10,000.

Quoting Tim suman

Is there anything my mom can do with out costing a ton of money?

No.

For $100,000 your mom will have to hire a lawyer to file a lawsuit against the two of them for the money.

Unless she recorded a mortgage with the house as security, she has no claim to the house, just an unsecured loan.

A lawsuit will be quite costly as lawyers charge an average of $300 per hour and want a retainer of many thousands to get them started. In case you are wondering, no, it's not likely that any lawyer will take this on contingency because getting a judgment against a pair of deadbeats is no guarantee of ever collecting.

My mom is worried for the unpaid taxes

I don't see why. The taxing authority will put a lien on the house (may already have) and will collect some day if the house ever gets sold.

My mom went to laywer and had an offer of 5k to each to sign over the house so she can sell it. The son never responded and the daughter-in-law said good luck getting me out of this house.

No surprise there. They OWN a house worth more than $100,000. Of course they aren't going to sell it for $10,000.

Though they might reconsider if they both get sued for $100,000 and would let the house go rather than having a judgment hanging over their heads for many years.

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